WEBVTT - Friday Flight - Cable Comeback, Robinhood Retirement, & The $42 Billion Question #603 0:00:00.080 --> 0:00:02.720 Welcome to How the Money. I'm Joel and I am that. 0:00:03.040 --> 0:00:06.840 Today we're discussing cable comeback, Robin Hood retirement, and the 0:00:06.920 --> 0:00:30.080 forty two billion dollar question. That's right, buddy, This is 0:00:30.160 --> 0:00:33.160 our Friday flight. And actually, before we get to our 0:00:33.200 --> 0:00:36.400 favorite stories from this past week, we have a little update. 0:00:36.880 --> 0:00:41.120 So last Friday, we celebrated our six episodes, right we did. 0:00:41.200 --> 0:00:44.120 We celebrated that by deciding to give away six hundred 0:00:44.120 --> 0:00:47.680 dollars to our listeners. Why not? And I said six thousand, 0:00:47.720 --> 0:00:49.760 But you said, I don't have that kind of money. 0:00:49.800 --> 0:00:52.880 Ain't got that ft X money. But ft X doesn't 0:00:52.880 --> 0:00:55.319 have any money anymore. They don't have money, just like us. 0:00:55.560 --> 0:00:58.760 So the way that listeners were able to enter into 0:00:58.840 --> 0:01:00.920 win that money, all that you needed to do was 0:01:00.960 --> 0:01:03.440 to sign up for the How to Money newsletter. Um 0:01:03.560 --> 0:01:05.399 and as long as you did that, you were entered 0:01:05.440 --> 0:01:08.720 into win. And you and I we did the randomizer 0:01:08.800 --> 0:01:14.959 and chose the top six results. And uh so, Stephen W. B. Tyler, 0:01:15.280 --> 0:01:19.960 s Jen R. Normal Ty, Miranda Kay, and Mike E. G. 0:01:20.600 --> 0:01:23.240 We will be reaching out to all six of you 0:01:23.319 --> 0:01:25.759 because y'all just won a hundred bucks each. By the way, 0:01:25.840 --> 0:01:28.440 if you forgotsh money didn't get around to it. We 0:01:28.480 --> 0:01:30.120 had a ton of people sign up for the newsletter. 0:01:30.200 --> 0:01:32.039 Thank you for that. But if there are folks out 0:01:32.040 --> 0:01:34.240 there listening, they're like, I forgot and I can't win 0:01:34.280 --> 0:01:36.360 six hundred bucks, So I'm just not going to sign 0:01:36.400 --> 0:01:38.720 up for the newsletter. No, No, that's the exact wrong 0:01:38.760 --> 0:01:40.240 thing to do. Well, We're gonna have more giveaways in 0:01:40.240 --> 0:01:42.040 the future, but we'll do this again. There is a 0:01:42.040 --> 0:01:44.040 reward just in and of itself by being a Hot 0:01:44.040 --> 0:01:46.959 of Money newsletter subscriber. That's right, all the financial wisdom 0:01:47.040 --> 0:01:50.000 and nuggets of information that come your way via that 0:01:50.000 --> 0:01:52.600 newsletter every single Tuesday morning. But Joel, real quick, I 0:01:52.640 --> 0:01:55.000 wanted to take a minute to update everybody on my 0:01:55.520 --> 0:01:58.560 the grocery experiment that Kate and I said that we're 0:01:58.600 --> 0:02:02.040 going to conduct. Remember this took a month off Costco, right, So, 0:02:02.040 --> 0:02:04.160 so basically we wanted to take that month off Costco 0:02:04.200 --> 0:02:07.280 because I noticed that ever since we started shopping primarily 0:02:07.320 --> 0:02:12.119 at Costco for our groceries, our budget had increased significantly. 0:02:12.639 --> 0:02:14.320 And so I talked about it with Kate and she 0:02:14.440 --> 0:02:17.080 was totally down to conduct this little experiment, and so 0:02:17.120 --> 0:02:20.239 we switched back to our original o G which is Aldi. 0:02:20.760 --> 0:02:23.520 And are you ready to hear the results? I don't know. 0:02:23.560 --> 0:02:25.799 If I want to, I might plug my ears. Dude. 0:02:25.800 --> 0:02:31.400 Our grocery budget went down over thirty percent, Yes, over 0:02:32.120 --> 0:02:34.960 and so weather. So Kate will argue, She's like, well, 0:02:35.000 --> 0:02:36.560 the quality and this is one of your favorite lines. 0:02:36.600 --> 0:02:39.880 Do like the quality is higher at Costco? And I understand. 0:02:39.880 --> 0:02:41.920 I get that. I think there are certain things where 0:02:41.960 --> 0:02:44.720 you are getting a superior product. But I think I 0:02:44.840 --> 0:02:46.640 bet too. I wonder if one of the reasons is 0:02:46.639 --> 0:02:48.320 you I wonder if you still have some things hanging 0:02:48.320 --> 0:02:51.880 around from that Costco trip from Sometimes we took that 0:02:51.880 --> 0:02:53.520 into account though, because Kate was just like, yeah, we 0:02:53.560 --> 0:02:55.080 you know, we do have some frozen veggies and some 0:02:55.120 --> 0:02:57.919 frozen meat that that we did consume in the month 0:02:57.960 --> 0:03:00.000 of November that we purchased in October. But we based 0:03:00.000 --> 0:03:02.480 the accounted for all of that. And even still, dude, 0:03:02.520 --> 0:03:06.600 even still they're over And there are various reasons why 0:03:06.600 --> 0:03:08.320 that might be the case for us, right, like whether 0:03:08.320 --> 0:03:10.919 it's just they've got a variety of products that Aldi 0:03:10.960 --> 0:03:13.040 doesn't carry, right, Like Aldi just has the staples I've 0:03:13.040 --> 0:03:15.400 talked about that before and how at Costco, I'm tempted 0:03:15.440 --> 0:03:18.520 to get the special Japanese barbecue sauce or the truffle 0:03:18.880 --> 0:03:21.960 Hot sauce fridge they got all the sauce in our 0:03:21.960 --> 0:03:24.920 clubhouse right now, I love putting that on the leftovers. 0:03:25.040 --> 0:03:26.920 But I think there's an element of the fact that 0:03:26.960 --> 0:03:29.799 everything comes in larger quantities in bulk. I think we 0:03:29.800 --> 0:03:32.320 were just eating more. I think we were being encouraged 0:03:32.360 --> 0:03:35.400 to consume more calories that plus, you know, I think 0:03:35.440 --> 0:03:38.240 that we were tossing more more food away. Uh just 0:03:38.360 --> 0:03:40.800 I think there was more waste as well. But but regardless, 0:03:40.840 --> 0:03:43.560 I you know that this is anecdotal, this is just us. 0:03:43.600 --> 0:03:45.920 Your mileage may vary. But I definitely wanted to share 0:03:45.920 --> 0:03:49.040 that with listeners because hey, we do love Costco. There 0:03:49.080 --> 0:03:52.080 are certainly benefits, but I still think if you are 0:03:52.160 --> 0:03:55.920 looking to slash your grocery bill to the bone, I 0:03:56.040 --> 0:03:57.840 do think that the best place to do that is 0:03:57.840 --> 0:03:59.320 at Aldie. I think you're right. I think you're right. 0:03:59.360 --> 0:04:01.200 I think when you're talking about how can I get 0:04:01.240 --> 0:04:03.920 away by spending the least amount of money possible on 0:04:04.000 --> 0:04:07.240 food while still being able to eat like decent stuff, right, 0:04:07.560 --> 0:04:09.520 I think all the is the answer. I mean, I 0:04:09.520 --> 0:04:12.120 think Costco takes a little more creativity and maybe a 0:04:12.160 --> 0:04:14.680 little bit more time in the kitchen preparing the because 0:04:14.680 --> 0:04:16.479 that's the thing too. Man, At Costco, we're buying so 0:04:16.600 --> 0:04:19.360 much more prepared stuff like snack kind of stuff, and 0:04:19.440 --> 0:04:21.960 that's a budget buster. Man, Yeah, for sure. So I 0:04:22.440 --> 0:04:25.120 think Costco makes sense for a lot of people if 0:04:25.120 --> 0:04:26.919 they're going to it, it's wide open knowing that they 0:04:27.000 --> 0:04:30.520 might spend more money, but knowing, hey, there's a trade 0:04:30.520 --> 0:04:33.120 off and I'm getting better quality of certain ingredients. Like, Man, 0:04:33.200 --> 0:04:36.359 you can't compare the quality of a Costco steak to 0:04:36.440 --> 0:04:39.120 the quality of Manality steak. Like they're different probably true, 0:04:39.160 --> 0:04:42.920 different animals, right, like literally different animals, but with the 0:04:42.960 --> 0:04:44.320 one you're talking about horse and the other one you 0:04:44.360 --> 0:04:48.080 talk about the right. So um yeah, just from something 0:04:48.120 --> 0:04:51.279 like that, you're not directly comparing apples and apples, but 0:04:51.600 --> 0:04:53.760 if you're talking and in all these is more accessible 0:04:53.800 --> 0:04:55.280 for a lot of people for so many reasons. There's 0:04:55.279 --> 0:04:59.080 like smaller stores, they're closer, and you're just like talking 0:04:59.080 --> 0:05:02.120 about less likely that your budget runs a muck because 0:05:02.240 --> 0:05:05.600 you spent too much on Japanese Barbecusa, the ware Club. 0:05:05.720 --> 0:05:07.240 There's all sorts of little things like that to do 0:05:07.360 --> 0:05:09.719 peak your interest. And if you're not careful, you you 0:05:09.760 --> 0:05:12.680 can let those I forget what they have. The CEO 0:05:12.760 --> 0:05:15.240 refers to them. But like those things that you find 0:05:15.279 --> 0:05:17.320 along the way, like they want to excite your interest 0:05:17.360 --> 0:05:20.160 in Costco with the rapid turnover of products. They want 0:05:20.160 --> 0:05:22.640 to delight you as a customer. But that can be 0:05:22.720 --> 0:05:25.159 to the detriment of your wallet, for sure. A man. 0:05:25.320 --> 0:05:27.080 All right, well, I wanted to quickly share that, and 0:05:27.120 --> 0:05:29.400 again to the six winners, we will be reaching out 0:05:29.440 --> 0:05:31.760 to you because of course we have your email since 0:05:31.800 --> 0:05:33.800 you signed up for the newsletter. We'll be reaching out 0:05:33.800 --> 0:05:35.599 to you to get you that money. Joel. Let's move on, man, 0:05:35.640 --> 0:05:37.599 Let's get to our Friday flight, which is of course 0:05:37.760 --> 0:05:40.080 a quick sampling of the stories that we found most 0:05:40.120 --> 0:05:43.839 interesting this week. And the Times they had an article 0:05:43.839 --> 0:05:48.640 about inflating prices of Christmas trees. Yes, inflation has made 0:05:48.760 --> 0:05:51.599 real life Christmas trees more expensive as well, along with 0:05:51.640 --> 0:05:54.840 everything else in your life. The average price last year 0:05:54.880 --> 0:05:57.919 for Christmas tree with seventy bucks for alive for tree 0:05:58.360 --> 0:06:01.039 uh this year is closer to eighty dollars. Uh. And 0:06:01.080 --> 0:06:03.159 the best advice from the Times is to buy a 0:06:03.160 --> 0:06:05.680 smaller tree, which I think is uh. I think that's 0:06:05.680 --> 0:06:08.760 good advice. So go the Charlie Brown route, because yeah, 0:06:08.760 --> 0:06:10.440 I mean prices on the six ft tree, it's gonna 0:06:10.440 --> 0:06:12.240 be a lot less than what it'll cost you for 0:06:12.279 --> 0:06:14.000 an eight fit tree. Back in the day, That's something 0:06:14.080 --> 0:06:15.440 Kate and I used to do. We literally would get 0:06:15.480 --> 0:06:17.000 the smaller tree and put it on a like a 0:06:17.040 --> 0:06:19.560 milk crate, like on a box, elevate it and then 0:06:20.120 --> 0:06:21.560 kind of like wrap it with the what do you 0:06:21.560 --> 0:06:23.960 call it, tree liner or the skirt or whatever whatever 0:06:24.000 --> 0:06:25.960 goes around at the bottom, so you get some of 0:06:25.960 --> 0:06:28.120 that some of the actual height, but you're just not 0:06:28.160 --> 0:06:30.479 spending at all on the actual tree. Like. But it 0:06:30.520 --> 0:06:33.760 also pays the shop around of course. And if you 0:06:33.839 --> 0:06:37.400 aren't massively attached to real real life Christmas, you know, 0:06:37.480 --> 0:06:40.159 like natural Christmas trees or whatever, you might want to 0:06:40.160 --> 0:06:42.599 look for a deal on a fake Christmas tree after 0:06:42.760 --> 0:06:45.160 Christmas is over. For sure, you can pay for it 0:06:45.240 --> 0:06:46.800 in less than two years. I think you paid for 0:06:46.880 --> 0:06:48.839 years and listen two years same here. I think we 0:06:49.320 --> 0:06:52.279 spent seventy bucks on ours or something. You've got fancy ones, 0:06:52.360 --> 0:06:55.520 I mean, speaking of costco inflation. Was there the other 0:06:55.600 --> 0:06:58.360 day I saw they had five artificial Christmas trees and like, okay, 0:06:58.480 --> 0:07:01.120 got this premium ones that look very real like those 0:07:01.120 --> 0:07:02.640 of the fantasy ones. I don't need that. Keep an 0:07:02.640 --> 0:07:05.960 eye on those jokers if they go. I mean, because 0:07:06.040 --> 0:07:08.840 ours isn't. So I told everybody how I removed that 0:07:08.839 --> 0:07:10.960 bottom section. Yeah it did in order to fit our 0:07:11.160 --> 0:07:13.800 new lower ceilings. But it doesn't sit super well in 0:07:13.840 --> 0:07:16.720 the stand now because yeah, because it wasn't, it's not 0:07:16.760 --> 0:07:18.720 as fat and so it leans. So so you are 0:07:18.720 --> 0:07:20.720 in the market for one of time we actually invite 0:07:20.760 --> 0:07:23.280 Vacember twenty six, man, that's the day to do it. Yeah, 0:07:23.280 --> 0:07:26.200 I know. Actually, so you watch Spirited is what like 0:07:26.240 --> 0:07:31.960 they that movie or whatever the story of referenced like 0:07:32.000 --> 0:07:34.880 the real life Christmas Tree Guild or something like that, 0:07:34.920 --> 0:07:36.840 and made just made me think of that movie because 0:07:36.880 --> 0:07:38.960 like that's a pr campaign that he launched. I was like, 0:07:38.960 --> 0:07:41.320 oh man, there's actually this real life, real life there 0:07:41.320 --> 0:07:44.000 really is one of those. Yeah, well let's move on 0:07:44.040 --> 0:07:47.160 at like obviously, yeah, Christmas is Christmas trees are a 0:07:47.200 --> 0:07:49.320 little more expensive this year. Which is a problem. But 0:07:49.360 --> 0:07:51.280 I think most people they've probably I don't know if 0:07:51.280 --> 0:07:52.760 they haven't gotten there's yet, they're gonna give it this 0:07:52.840 --> 0:07:54.920 week out of all likelihood. And I'm not sure if 0:07:54.920 --> 0:07:57.040 Costco still does the live tree thing. If they do, 0:07:57.360 --> 0:07:59.560 that's always been the cheapest place actually over the years 0:07:59.600 --> 0:08:01.960 to get Christmas trees because they literally like don't set 0:08:02.000 --> 0:08:03.960 them up in storage ornything. They're like handing them to 0:08:03.960 --> 0:08:05.920 you out of the back of a truck. But let's 0:08:05.920 --> 0:08:07.960 move on. Let's talk about savings rates, Matt, because savings 0:08:08.040 --> 0:08:10.640 rates in the United States are plumbing, and after seeing 0:08:10.680 --> 0:08:16.120 a massive spike in the savings rates Americans in one 0:08:16.920 --> 0:08:19.720 October of this year, we have some new data and 0:08:19.840 --> 0:08:21.880 it turns out savings rates dipped quite a bit to 0:08:21.920 --> 0:08:24.880 the lowest levels actually since two thousand and five. The 0:08:24.960 --> 0:08:29.440 average savings rate in October, when you were still shopping 0:08:29.480 --> 0:08:32.959 at Costco, was a paltry two point three percent. That's 0:08:33.000 --> 0:08:36.520 according to the Bureau of Economic Analysis. And basically, folks 0:08:36.520 --> 0:08:39.560 are less interested in saving because they have and I've 0:08:39.800 --> 0:08:42.079 never really loved this term, but they have what's known 0:08:42.360 --> 0:08:47.000 to economists as excess savings still on hand. So Basically, 0:08:47.000 --> 0:08:49.960 people feel like they can hit pause on saving that 0:08:50.040 --> 0:08:52.160 money because they've still got more money in the bank 0:08:52.200 --> 0:08:55.640 than they're used to having. So because of the lingering 0:08:55.720 --> 0:08:57.960 stimulus checks, people like, yeah, I still got I still 0:08:57.960 --> 0:08:59.800 got more cash on hand than I typically do, so 0:09:00.160 --> 0:09:02.400 I can I cannot save some of the money that's 0:09:02.400 --> 0:09:05.040 coming in, I can spend more of it. The problem is, 0:09:05.160 --> 0:09:07.400 it's easy to get used to spending more due to 0:09:07.520 --> 0:09:10.120 what's noticed hedonic adaptation. We get used to a certain 0:09:10.200 --> 0:09:14.200 lifestyle and then cutting back really hurts, whereas it would 0:09:14.240 --> 0:09:18.560 been easier if we had never experienced that inflated lifestyle 0:09:18.600 --> 0:09:21.000 to begin with, exactly as it's tough to dial it back. 0:09:21.320 --> 0:09:23.800 And as a recent Times headline put it, we can't 0:09:23.880 --> 0:09:26.240 keep spending like this. And it's true, right because at 0:09:26.240 --> 0:09:29.959 some point those excess funds, those savings, they're gonna get drained. 0:09:30.360 --> 0:09:33.360 And you know, hopefully we have already experienced pe inflation. 0:09:33.720 --> 0:09:36.280 But of course we would suggest that you keep your 0:09:36.280 --> 0:09:38.800 war chest full. We want you to hold onto more 0:09:38.800 --> 0:09:40.520 of those savings that I think a lot of folks are, 0:09:41.200 --> 0:09:43.880 in particular as younger, younger listeners are still trying to 0:09:43.880 --> 0:09:45.640 save up for those down payments, right Like, that's a 0:09:45.720 --> 0:09:48.280 lot of money that they want to keep at the ready. 0:09:48.320 --> 0:09:50.480 But basically, we also don't want you to spend all 0:09:50.480 --> 0:09:51.760 the money because we don't want you to be like 0:09:51.840 --> 0:09:55.280 the average American, especially if you're one of the individuals 0:09:55.440 --> 0:09:59.440 who has seen their student loan payments paused. Just keep 0:09:59.440 --> 0:10:01.320 in mind that they're not going to stay that way forever, 0:10:01.480 --> 0:10:03.880 right Like, we don't want you to take your excess 0:10:03.920 --> 0:10:06.880 savings as a chance to spend if if you're still 0:10:06.880 --> 0:10:08.560 hanging on to some use it as a chance to 0:10:08.640 --> 0:10:13.520 make more progress, you know, towards your financial goals. Uh. Unfortunately, 0:10:13.720 --> 0:10:17.240 as rates on savings accounts have continued to take upwards, 0:10:17.480 --> 0:10:20.120 it just doesn't feel nearly as much like you're you're 0:10:20.160 --> 0:10:22.760 being penalized for holding cash anymore. At least you're getting 0:10:22.800 --> 0:10:26.080 paid something for hanging onto that cash, Yeah, for sure. 0:10:26.480 --> 0:10:28.520 And on that note, there was another article this week 0:10:28.520 --> 0:10:31.839 that echoes are our sentiments on that front, and this 0:10:31.920 --> 0:10:33.600 is this is what we referred to as the forty 0:10:33.600 --> 0:10:35.439 two billion dollar question, because that's how actually the Wall 0:10:35.440 --> 0:10:38.920 Street Journal referred to it this week, and that's uh, 0:10:38.920 --> 0:10:41.440 that article was about how much money that savers left 0:10:41.440 --> 0:10:44.600 on the table in Q three of this year by 0:10:44.720 --> 0:10:47.240 staying with the big banks that barely pay a pittance 0:10:47.360 --> 0:10:50.440 on interest in their savings accounts. And we're not gonna 0:10:50.440 --> 0:10:51.840 beat the dead horse. I feel like we talked about 0:10:51.840 --> 0:10:54.240 this a lot, but let that number sink in forty 0:10:54.480 --> 0:10:58.079 two billion dollars just in Q three, in one quarter 0:10:58.280 --> 0:11:01.880 that that savers lost about because they're still or earning 0:11:02.080 --> 0:11:03.800 mind point zero one percent with one of the big 0:11:03.840 --> 0:11:05.719 banks when they could have been earning three and a 0:11:05.760 --> 0:11:09.240 half plus percent, right, And so inertia bias is strong. 0:11:09.360 --> 0:11:12.080 We get it, but this is one move worth making. 0:11:12.080 --> 0:11:13.800 You make it once and then you don't really have 0:11:13.840 --> 0:11:15.600 to think about it again. We'll link to an article 0:11:15.640 --> 0:11:17.920 in the show notes that will help you make that switch, 0:11:17.920 --> 0:11:20.160 because you might be saying, like, I just don't even 0:11:20.200 --> 0:11:21.320 know how to do this, and it sounds like a 0:11:21.320 --> 0:11:24.800 big pain, and it sounds like it's it's gonna be 0:11:24.880 --> 0:11:26.480 I think it's gonna be really hard. But the truth 0:11:26.559 --> 0:11:29.480 is it's not very hard. And the benefits not just 0:11:29.559 --> 0:11:31.240 the interest rate. There are a lot of other benefits 0:11:31.240 --> 0:11:34.720 to banking somewhere that's other than the big banks as well, 0:11:34.800 --> 0:11:38.800 like fewer fees, better customer service, better uh APP interface typically, 0:11:38.920 --> 0:11:40.800 So there's there's a lot of reasons to make the switch, 0:11:41.080 --> 0:11:43.880 and we want to help you do that with this article. Um, 0:11:44.040 --> 0:11:46.000 if you haven't done it yet, that's right, and it's 0:11:46.080 --> 0:11:49.000 easier than you think. So Joel in the UH in 0:11:49.040 --> 0:11:50.760 the title of the episode, you mentioned robin Hood. I 0:11:50.760 --> 0:11:53.200 feel like that's the name that we haven't said recently 0:11:53.559 --> 0:11:55.640 so that everyone's like, oh, robin Hood. So we talked 0:11:55.679 --> 0:11:57.920 about them in a while eighteen months ago, two years ago. 0:11:58.000 --> 0:12:00.840 So listener Tyler. He actually sent us an email basically 0:12:00.880 --> 0:12:04.880 immediately on Tuesday after an announcement from robin Hood was 0:12:05.040 --> 0:12:09.000 made about them finally launching I ra a sh There 0:12:09.120 --> 0:12:11.000 is currently a wait list, but it looks like this 0:12:11.040 --> 0:12:13.920 is going to roll out to the general public come January. 0:12:14.080 --> 0:12:16.240 And of course we've we've knocked robin Hood over the 0:12:16.280 --> 0:12:19.000 years for not offering retirement accounts. I think that was 0:12:19.040 --> 0:12:21.360 probably one of the biggest strikes against them. We were 0:12:21.400 --> 0:12:23.320 like a lot of these other platforms in one is 0:12:23.400 --> 0:12:25.880 robin Hood's competitor in a lot of ways, and we 0:12:25.880 --> 0:12:28.640 were like, one's doing way better and they allow you 0:12:28.679 --> 0:12:30.960 to have retirement accounts, Like, that's a way better option 0:12:31.040 --> 0:12:33.480 because of course we want folks investing within those tax 0:12:33.480 --> 0:12:36.640 advantaged accounts first before you invest in your robin Hood account, 0:12:36.640 --> 0:12:39.600 which previously uh and I guess even now is just 0:12:39.679 --> 0:12:42.360 brokerage accounts. Uh. So it was welcome news to hear 0:12:42.400 --> 0:12:44.679 that you can now open a traditional or a roth 0:12:44.800 --> 0:12:47.720 ira A on the platform. Plus, and here's the kicker man, 0:12:47.800 --> 0:12:50.800 robin Hood is offering a one percent in match on 0:12:50.960 --> 0:12:54.480 contributions that you make to your ira A on the platform. 0:12:54.600 --> 0:12:57.240 First of its kind. It's awesome. Yet like literally nobody 0:12:57.240 --> 0:13:00.200 else in the business is offering anything like this. So 0:13:00.240 --> 0:13:02.840 folks are you're probably thinking, oh, Matt and Jel, they're 0:13:02.840 --> 0:13:05.600 gonna be all about this. They completely love this right well, 0:13:05.800 --> 0:13:07.720 because typically it's a mixed bag. You have to work 0:13:07.800 --> 0:13:10.000 somewhere and getting your employer does the match, right, But 0:13:10.120 --> 0:13:12.960 this is robin Hood saying no word as the brokerage, 0:13:12.960 --> 0:13:15.000 as the company itself. They are providing the match, which 0:13:15.040 --> 0:13:18.000 I think is awesome, and so it is a mixed 0:13:18.040 --> 0:13:20.120 bag though, like we we love that robin Hood is 0:13:20.160 --> 0:13:23.160 offering that match incentive, but there are some other things 0:13:23.160 --> 0:13:25.720 you need to consider, and we would recommend for folks 0:13:25.760 --> 0:13:29.160 to check out the f a QUES section on their website. 0:13:29.440 --> 0:13:30.840 Will link to this in the show notes. But if 0:13:30.880 --> 0:13:32.920 you want to keep that one percent match, there is 0:13:32.960 --> 0:13:36.719 a five year vesting period. And also we noticed too 0:13:36.720 --> 0:13:39.320 there is an outgoing transfer fee of a hundred bucks, 0:13:39.760 --> 0:13:42.280 which is pretty steep. It's worth noting that our favorite, 0:13:42.280 --> 0:13:46.200 our very favorite brokerage houses, UH Fidelity and Vanguard neither 0:13:46.240 --> 0:13:49.400 one of them charging anything in order to transfer funds 0:13:49.400 --> 0:13:51.840 out of an zero versus a hundred. That's a big deal. 0:13:52.400 --> 0:13:55.199 It sounds really nice. But yeah, you might be handcuffed 0:13:55.320 --> 0:13:58.200 to Robin Hood, which may not be the worst thing 0:13:58.240 --> 0:14:00.560 in the world though, right like, because I mean, I say, 0:14:00.600 --> 0:14:02.199 like it almost feels like Robin Hood, like that they're 0:14:02.200 --> 0:14:04.120 starting to live up their name a little bit, right 0:14:04.160 --> 0:14:07.240 because by encouraging investors to stick with them for that 0:14:07.280 --> 0:14:10.800 five year investing period, essentially not only are they encouraging 0:14:11.240 --> 0:14:13.920 investors to stay with them, but they're encouraging investors to 0:14:14.000 --> 0:14:16.480 not touch money that should be invested for the long term. 0:14:16.640 --> 0:14:18.680 Right and so, as opposed to before, it seems more 0:14:18.720 --> 0:14:22.880 self interested than than an attempt to help people. Actually say, 0:14:23.440 --> 0:14:25.200 but if it's win win. I don't. I don't see 0:14:25.240 --> 0:14:26.960 the harm in that, right, and if I can get 0:14:26.960 --> 0:14:29.320 on there as someone who has been self employed virtually 0:14:29.360 --> 0:14:32.880 my entire life, where I have never experienced a company massage, 0:14:33.880 --> 0:14:36.320 literally this is I mean, we were able to provide 0:14:36.720 --> 0:14:40.440 ourselves a match you and I as business owners, but exactly, 0:14:40.440 --> 0:14:42.320 but for it to feel like it's something that you're 0:14:42.360 --> 0:14:45.920 getting completely free, I'm actually really stinking bullish on this. 0:14:45.920 --> 0:14:47.960 I'm pretty excited about it, and I'll be looking into 0:14:48.000 --> 0:14:50.040 it and keeping folks posted if I do end up 0:14:50.080 --> 0:14:51.480 doing that, because I mean I think I will, I 0:14:51.480 --> 0:14:53.560 really do, and I don't. I think a lot of 0:14:53.560 --> 0:14:55.920 folks are also saying, dude, it's just one percent. But 0:14:56.040 --> 0:14:58.800 imagine like basically what I think what robin Hood is 0:14:58.840 --> 0:15:01.440 doing here, Like they're essentially forcing a one percent fee 0:15:02.080 --> 0:15:04.360 on everybody else. It's almost as if you're four one 0:15:04.440 --> 0:15:06.160 k because if I can get Voo, which you can, 0:15:06.240 --> 0:15:08.040 you can get Vanguard e t s. You know, on 0:15:08.200 --> 0:15:12.000 the robin Hood platform, by going with robin Hood instead 0:15:12.000 --> 0:15:14.680 of even through Vanguard. By robin Hood offering that one percent, 0:15:14.720 --> 0:15:18.080 it's it's almost as if Vanguard, if they instituted a 0:15:18.080 --> 0:15:21.560 one percent expense ratio or something like that. And so 0:15:21.600 --> 0:15:24.000 while it doesn't sound like a lot of money, those 0:15:24.120 --> 0:15:25.960 you know that that one percent it adds up over time. 0:15:25.960 --> 0:15:28.600 And I always said it's not meaningless. Right when you 0:15:28.640 --> 0:15:31.200 bump up your four ok contribution by one percent, that 0:15:31.360 --> 0:15:33.680 matters over the long haul. And so if you're this 0:15:33.720 --> 0:15:37.640 holiday season, you're thinking, Okay, I have more money on 0:15:37.680 --> 0:15:38.760 hand than I thought I was going to have, and 0:15:38.800 --> 0:15:40.400 you bump that up, that's a big deal, Like that's 0:15:40.440 --> 0:15:42.520 something worth worthy of praises. So I think you're right, Like, 0:15:42.560 --> 0:15:44.880 I don't want to compounds over time, but I also 0:15:44.880 --> 0:15:47.240 want to make sure that Robin hood is going to 0:15:47.520 --> 0:15:51.040 do right by investors, because yeah, I'm not sure hopefully 0:15:51.080 --> 0:15:52.880 they do right. Like, yeah, they haven't been around as 0:15:52.920 --> 0:15:55.080 long as Vanguard or Fidelity. Then they've been around for like, 0:15:55.120 --> 0:15:57.200 you know, a hundred a long time. I don't know 0:15:57.200 --> 0:15:59.440 if the hundred years yet, but Robin Hoods, I mean, 0:15:59.440 --> 0:16:00.600 I think they've been a on for close to a 0:16:00.640 --> 0:16:03.000 decade now. They're not like a new fintech start up 0:16:03.080 --> 0:16:06.440 where they also haven't septation in that decade's and so 0:16:06.600 --> 0:16:08.080 I'm not sure if I'm willing to give up the 0:16:08.080 --> 0:16:09.600 burden the hand that is one of these low cost 0:16:09.600 --> 0:16:13.080 brograges that we love to head over to robin Hood 0:16:13.200 --> 0:16:15.360 for this match. But I will say, like, if you 0:16:15.520 --> 0:16:19.560 haven't started contributing to Traditional or roth Ira yet and 0:16:19.600 --> 0:16:22.400 this match, this incentive actually gets you to do that. 0:16:22.440 --> 0:16:25.000 If this is the behavioral kicking the pants, you know 0:16:25.080 --> 0:16:27.320 that that pushes you in that direction. I think that's great. 0:16:27.640 --> 0:16:31.800 And I'm not gonna disswage people from doing business with 0:16:31.880 --> 0:16:33.800 robin Hood. I just don't know if I'm gonna migrate 0:16:33.840 --> 0:16:35.720 over there just for this fair enough, But yeah, we'll 0:16:35.720 --> 0:16:38.440 see more, especially as the rollout continues to happen. Right 0:16:38.440 --> 0:16:40.600 now there's I think I I signed up to be 0:16:40.600 --> 0:16:41.960 on the wait list just to check it out, and 0:16:42.000 --> 0:16:45.720 I think I'm four and people behind. So it'll be 0:16:45.760 --> 0:16:48.200 a minute. But while we're talking about Iras, Matt, I 0:16:48.200 --> 0:16:50.960 just wanted to mention too that the roth Ira we 0:16:51.160 --> 0:16:53.440 robin Hood offers the Traditional and the roth just like 0:16:53.760 --> 0:16:57.640 just like most of these brokerage companies that we talked about, 0:16:57.680 --> 0:17:00.160 just like vanguardien Fidela, you can do either one with 0:17:00.160 --> 0:17:02.160 with both of them, or with Schwab or within one, 0:17:02.200 --> 0:17:05.680 which is great But there's so many reasons that we've 0:17:05.720 --> 0:17:08.520 talked about ad nauseum on this show over the years 0:17:08.720 --> 0:17:11.400 about why you should opt for why so many people 0:17:11.400 --> 0:17:14.400 should not for a wrath over a traditional ira that 0:17:14.440 --> 0:17:16.400 you know, the fact that tax rates are historically low 0:17:16.440 --> 0:17:18.600 and set to go up, you know at the the 0:17:18.640 --> 0:17:21.960 expiration of the Tax Cuts and Job Act. That's a 0:17:22.000 --> 0:17:24.000 solid reason to contribute more to your wrath instead of 0:17:24.000 --> 0:17:27.120 a traditional you know, the flexibility of that particular account 0:17:27.320 --> 0:17:30.959 is another reason. But a third is that roth iras 0:17:31.040 --> 0:17:34.680 do not force you to take required minimum distributions and 0:17:34.760 --> 0:17:36.639 those r m d s. Yeah, I know most of 0:17:36.720 --> 0:17:39.600 us were trying to visualize our future self and that's 0:17:39.640 --> 0:17:42.240 actually helping us save more in the here and now 0:17:42.359 --> 0:17:45.480 for our futures. Identify with sixty five year old Matt 0:17:45.480 --> 0:17:48.040 and Joel, Right, we want to like kind of realize, wait, 0:17:48.040 --> 0:17:49.639 we want to be well taken care of at that 0:17:49.720 --> 0:17:53.199 age and and we want the more financial flexibility. But 0:17:54.080 --> 0:17:57.720 require minimum distributions can really have a major impact on 0:17:57.800 --> 0:18:01.879 your tax liability and retirements. And so yeah, if it 0:18:01.920 --> 0:18:03.560 will link to an article that will kind of help 0:18:03.600 --> 0:18:06.800 you see just how bad it can yet. But yeah, 0:18:06.840 --> 0:18:09.639 for most folks, not all, but for most, prioritizing a 0:18:09.760 --> 0:18:11.800 roth ira is going to be the best way to 0:18:11.840 --> 0:18:15.480 optimize your retirement contributions, allowing you the most flexibility throughout 0:18:15.480 --> 0:18:18.080 the years. That's right, man, We've got several other stories 0:18:18.080 --> 0:18:20.040 that we're gonna get to here right after the break, 0:18:20.080 --> 0:18:23.639 including that cable comeback story. Looking forward to that right 0:18:23.680 --> 0:18:35.679 after this. All right, the Friday flight continues, and of 0:18:35.720 --> 0:18:37.440